U.S. state Illinois will impose a 0.2 percent tax on cryptocurrency transactions from 2027.

Decript, a blockchain media outlet, reported on Tuesday that Illinois Governor J.B. Pritzker signed the Digital Asset Tax Act as part of the state’s 2027 budget. The law takes effect on Jan. 1, 2027.

The bill’s core provision applies a 0.2 percent tax rate to in-state cryptocurrency activity, including transfers and purchases of digital assets such as bitcoin. The text says taxable activity includes not only transactions physically carried out in Illinois, but also activity by individuals who have Illinois as their primary place of use.

Digital asset brokers are responsible for collecting the tax. Major cryptocurrency exchanges that provide services in Illinois would effectively serve as collection channels under the structure.

Opposition has also emerged. The Crypto Council for Innovation criticised the measure as harsh in a letter to the governor and argued that, if implemented, Illinois could become the only U.S. state to tax even customers conducting digital asset business activity.

The council also said the tax system was unprecedented in imposing an excessive burden on Illinois residents simply for using digital assets, warning it could slow innovation and push developers out of the state. It also cited the absence of similar transaction-based taxes in other states as a problem. The group said it was concerned Illinois would become an outlier as competition intensifies to attract digital asset innovation.

Concerns were also raised about how the bill was handled. The council said stakeholders directly affected did not get an opportunity to voice opinions during the legislative process. It argued that meaningful consultations with stakeholders were needed before implementation because it is the first type of tax aimed at the entire industry and users.

By contrast, the Illinois Policy Institute, a taxpayer advocacy group in the state, pointed out that the state legislature expects the law to generate up to $60 million in tax revenue next year. For the state government, it is a new revenue source, but the industry is placing more weight on higher transaction costs and the possibility of reduced services within the state.

At the federal level, seven bills related to cryptocurrency taxation were newly introduced earlier this month in the United States. They include provisions to clarify tax standards for mining and staking or to introduce tax exemptions for small transactions. But the bills faced opposition at a House committee hearing shortly after being introduced. In that context, Illinois’ adoption of a transaction tax is expected to be recorded as an example of U.S. crypto tax discussions spreading at both federal and state levels at the same time.